2013 Commercial Law Developments -- III. Guaranties
III. Guaranties

March 24, 2014

  • Ringgold Capital IV, LLC v. Finley, 2013 IL App (1st) 121702, 2013 Ill. App. LEXIS 406 (Ill. App. June 19, 2013) -- The court found that a borrower failed to plead valid fraud claims against a guarantor. On August 3, the guarantor executed a limited guaranty for obligations created under a July 27 loan agreement, which was never made. The borrower eventually entered into a loan agreement on August 24, with the same terms as the proposed July 27 loan agreement. The guarantor's guarantee was never re-executed or amended to reflect the August 27 closing date. The borrower defaulted on the loan and attempted to assert claims regarding the August 27 loan agreement. The guarantor did not have any obligations under the August 27 loan Agreement.

IV. Fraudulent Transfers / Table of Contents